📈 Sri Lanka 2025: Record Growth & Resilience Post-Cyclone

Sri Lanka concluded 2025 with strong macroeconomic recovery despite the impact of Cyclone Ditwah, shifting from stabilization to a high-growth trajectory. • Macroeconomic Performance • GDP growth hit approx. 5%, exceeding forecasts. • Inflation remained low/deflationary; interest rates (AWPLR) eased to 8-9%. • Foreign reserves strengthened to US$ 6.3 Bn, despite US$ 4 Bn in debt servicing and US$ 2 Bn for vehicle imports. • Debt restructuring is nearly complete (99% of eligible obligations). • Record Exports & Inflows • Apparel & textiles, tea, and coconut products hit all-time high export values. • ICT/BPM (IT & services) showed significant momentum. • Tourism arrivals reached the highest levels since 2018; workers' remittances hit record peaks. • Capital Markets (CSE) • ASPI gained ~40% in 2025 (up 166% over 3 years). • Average daily turnover reached a record Rs. 5.18 Bn. • Listed company earnings for Q1-Q3 2025 totaled Rs. 520 Bn. • Market capitalization reached Rs. 8 Trillion (US$ 26 Bn). • Cyclone Recovery & 2026 Outlook • Rebuilding costs estimated at US$ 5 Bn; Govt. holds Rs. 1.2 Trillion in treasury cash. • 2026 growth projected at 5-6% driven by infrastructure spending and 80% capital budget utilization. • Key opportunities in construction, logistics, and agriculture modernization.